Tuesday’s Closing Grain and Livestock Futures
Mar. corn closed at $3.85 and 3/4, down 16 and 1/4 cents
Jan. soybeans closed at $10.00, down 13 and 1/2 cents
Jan. soybean meal closed at $349.70, down $6.80
Jan. soybean oil closed at 32.39, down 6 points
Mar. wheat closed at $5.48, down 7 and 1/2 cents
Feb. live cattle closed at $157.45, down $3.00
Feb. lean hogs closed at $75.17, down $1.47
Feb. crude oil closed at $45.89, down 18 cents
Mar. cotton closed at 60.15, up 42 points
Jan. Class III milk closed at $16.09, up 2 cents
Jan. gold closed at $1,234.30, up $1.60
Dow Jones Industrial Average: 17,613.68, down 27.16 points
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Market News Recap
Soybeans were lower on fund and commercial selling. Traders followed through on Monday’s losses sparked the increased production number for Brazil. Demand continues to be strong, no argument there, but there was no real fresh positive news. Soybean meal and oil followed beans lower. The National Oilseed Producers Association is slated to release December member crush numbers Thursday, with the crush expected to be a new all-time high.
Corn was lower on fund and commercial selling. Corn’s also looking at good demand, with unknown buying 105,000 tons of 2014/15 U.S. corn. Farmer selling has been light, but there’s still plenty of corn available and that corn will be need to be marketed at some point. Ethanol futures were lower.
The wheat complex was lower on fund and commercial selling. Wheat also pretty much just followed through after another bearish set of USDA numbers Monday. Any damage to winter wheat won’t be known until the crop comes out of dormancy in spring. Ukraine’s Ag Ministry has requested grain traders limit wheat exports for January and February to 200,000 tons per month. Japan is tendering for 149,800 tons of wheat from the U.S., Australia, and Canada.
For the second week in a row some cattle traded on Tuesday. USDA Mandatory reported a mostly light trade in Eastern Nebraska on moderate demand. Early dressed sales at 264.00 to 265.00, that looks to be about $4.00 to 6.00 lower than last week’s weighted average basis Nebraska. DTN reported a few sales in Iowa also from 264.00 to 265.00. There were a few bids according to private sources in Kansas at 164.00. Some asking prices remained around 170.00 to 172.00 in the South and 273.00 to 275.00 plus in the North. The Tuesday slaughter was estimated at 111,000 head, 1,000 less than last week and 10,000 smaller than last year.
Boxed beef cutout values were higher on moderate demand and light offerings. Choice beef was up 2.85 at 261.63, and select was 1.30 higher at 251.68.
Chicago Mercantile Exchange live cattle contracts settled 120 to 300 points lower. What started out as a mixed trade turned bearish with front month contracts posting triple digit losses. The lack of support through the entire complex was not a shock to many in the market, but the inability to sustain gains seen on Monday could significantly damage the ability to draw prices higher through the end of the week. February settled 3.00 lower at 157.45, and April was down 2.95 at 156.40.
Feeder cattle ended the session 160 to 237 points in the red with aggressive triple digit losses seen through the feeder futures. Trade volume was limited and that kept prices unable to move in an aggressive range. January settled 1.85 lower at 221.55, and March was down 2.37 at 210.92.
Feeder cattle receipts at the Oklahoma National Stockyards on Monday totaled 9400 head. Compared to last week feeder steers and heifers were 5.00 to 10.00 lower with instances of 10.00 to 15.00 lower on steers over 900 pounds. Calves were lightly tested. A few steer and heifer calves were mostly 8.00 to 12.00 .00 lower, with 500 to 550 pound steers and 500 to 600 pound heifers mostly weak. Demand was moderate following the decline in cattle futures last week. 640 head of feeder steers medium and large 1 averaging 726 pounds traded at 232.59 per hundredweight. 725 pound heifers brought 216.23.
Lean hogs settled 22 to 147 points lower. There was follow through pressure in the complex as early support quickly eroded. The market was pressured by weaker cash markets and outside market direction. February settled 1.47 lower at 75.17 and April was down 1.20 at 76.50.
Barrows and gilts in the Iowa/Minnesota direct trade closed .32 lower with a weighted average of 71.88 on a carcass basis, the West was down .34 at 71.79, and the East was not reported due to confidentiality. Nationally the hog market was .18 lower at 71.87. Missouri direct base carcass meat price was steady to 1.00 lower from 62.00 to 67.00. Midwest hogs on a live basis were steady from 47.00 to 55.00.
The pork carcass cutout value FOB plant was up 1.76 at 84.38 with hams up over $7.00.
The premium of wholesale beef over wholesale pork has simply exploded since the first of the year. This pattern will probably soon reverse as meat buyers come to perceive pork as the superior value.
Hog slaughter was estimated at 433,000 head, 16,000 more than last week, and 11,000 greater than last year.
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